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Crypto in general contains a lot less uncollateralized debt, surprising chains of counterparty risk, and so on than traditional finance. This is because those d
by anonymoushn 4y ago
Crypto in general contains a lot less uncollateralized debt, surprising chains of counterparty risk, and so on than traditional finance. This is because those defi protocols and exchanges that want to survive have process margin calls and liquidations quickly or be wiped out. 3AC may leave some counterparties in bad situations, but those counterparties are totally insignificant compared to the entities one hears about in traditional finance.
- hiq 4y ago> Crypto in general contains a lot less uncollateralized debt, surprising chains of counterparty risk, and so on than traditional finance. I don't think that's obvious at all when you have entities like Tether with unclear off-chain financials. Only the on-chain stuff is transparent and works as you explained.